Michael Dell to use own money to seek majority control -- report
The company founder is planning to kick in $500 million to $1 billion of his personal funds to try to get majority control of Dell, Bloomberg reports.
Michael Dell may kick in equity financing of $500 million to $1 billion combined with his 15.7 percent stake in the company to seek majority control of the company, according to Bloomberg. That would push his ownership stake past 50 percent.
With the investment, Dell would be contributing more than half of the total $8 billion to $9 billion equity check. The remainder of the takeover would be financed by debt and "possibly some of the $11 billion of cash Dell reported it had as of September 30," according to Bloomberg.
This follows on the heels of reports that$1 billion to $3 billion and was in talks with Silver Lake Partners to help take Dell private.
However, the WSJ today reported that Microsoft's role in the new company has been a sticking point in negotiations. Though the deal is still expected to stay on track, Microsoft wants to have a say in some of Dell's operations rather than just being a source of funding, according to the WSJ's sources.
Dell, a one-time leading PC maker, has hit hard times of late. The company's stock has continued to lose value as it defends itself against rivals, and despite the many acquisitions it's made over the past several years, there are concerns about how fast those businesses are taking off. Some industry watchers are hoping that going private could give it the reboot that it needs.